Heat Pumps Today

Policy changes for the cost-of-living crisis The cost-of-living crisis, quite rightly, currently dominates all conversations and is likely to be a key focus for the new Prime Minister. Whilst the energy industry as a whole is affected, heating costs have weighed heavily in the increase in bills that households are facing. Following the October Price Cap announcement, an average household now faces an average dual fuel bill of £3,549, an increase of over 80%. The spike in gas and electricity prices has re-emphasised the need for additional support to improve the energy efficiency of the UK’s housing stock and reduce energy bills and carbon emissions. Greater energy efficiency in homes is required to align the country’s emissions with our net-zero target by 2050; as stated by the Climate Change Committee in their most recent report to Parliament, “there remains a particular policy gap on energy efficiency” . Much of the attention given to improving the energy efficiency of our homes surrounds insulation. These measures are fundamental to reducing energy bills and are of even greater importance now with fuel prices rising. The Heat Pump Association (HPA) has long been a supporter of a fabric-first approach for this reason, as well as the complementary nature that improving the thermal efficiency of buildings can have on heat pump installations. Furthermore, there has been a range of self-help articles in the run-up to, and in the wake of, the price cap announcement, advising on the benefits of ‘turning down your boiler’ or lowering flow temperatures to run heating systems more efficiently and lower bills. Many heating systems in the UK run at high flow temperatures and could cut their fuel bill as a result. Government should intervene to ensure all heating systems are installed and operated as efficiently as possible, regardless of the fuel used. CMYK / .ai CMYK / .ai CMYK / .ai www.acrjournal.uk/heat-pumps 11 H P A Lesson the impact of cost-of-living crisis This has been an important part of the HPA’s policy asks for several years – we believe they should form a part of a suite of policies to lessen the impact of the cost-of-living crisis for many. Specifically, the HPA recommends three policies to directly encourage these changes and help translate the skill base of the heating industry along to one more compatible with lower flow temperatures: 1. Mandate a maximum flow temperature of 55°C in Building Regulations to be applied to replacement heating systems from 2026. 2. Mandate in Building Regulations for Heat Loss Calculations to be carried out for all replacement heating systems from 2026. 3. Require all heating installers to have a Low Temperature Heating and Hot Water Qualification, or equivalent, as part of accreditation scheme refresher courses. While these changes would go a long way to addressing the immediate cost-of- living crisis, they will also help shift the heating market towards a low-temperature policy environment, an essential step in the transition to a net-zero economy. The October Price Cap announcement also means that the running cost of heat pumps became relatively cheaper than natural gas boilers (as shown in the graph). As a result, we would expect a heat pump running at a more than achievable seasonal coefficient of performance (sCOP) of 2.85 to be cheaper to run than a natural gas boiler. The crisis demonstrates the need for intervention, and there are clear policies that the new Prime Minister could implement immediately to help. Whilst in hindsight, earlier intervention would have eased the current crisis, it is better late than never to cut bills, and save lives this winter. Phil Hurley, Chairman of the Heat Pump Association By Phil Hurley, Heat Pump Association Chair Figure 1: Percentage change in cost per kWh i www.ofgem.gov.uk/check-if-energy-price-cap-affects-you ii www.theccc.org.uk/wp-content/uploads/2022/06/Progress-in-reducing-emissions-2022-Report-to-Parliament.pdf iii www.heatpumps.org.uk/wp-content/uploads/2020/11/HPA-Retrofitting-Homes-For-Net-Zero-Heating-Final.pdf